Industry Updates

'SAMENA Daily' - News

Saudi Arabia leads ecommerce surge in MENA during 2024 festive season

Saudi Arabia played a key role in driving a 44% increase in e-commerce orders across the Middle East and North Africa (MENA) region during the 2024 festive season, according to a joint study by Flowwow and Admitad. The growth was fueled by mobile shopping trends, cultural celebrations, and gifting, with Saudi Arabia leading the way in mobile commerce, where 62% of online purchases were made via mobile devices.

The report also highlighted the broader growth of the MENA e-commerce market, expected to reach $50 billion by 2025. The holiday season saw significant activity in this market, with Flowwow, a UAE-based gifting marketplace, reporting a 62% rise in purchases, an 86% increase in sales turnover, and a 15.76% rise in average order value compared to the previous year.

Slava Bogdan, CEO of Flowwow, remarked, “The festive season is one of the peak shopping periods for our gifting marketplace, a time for customers to celebrate and share joy through gifts for loved ones.” He noted that this period, spanning from White Friday in November to Christmas and New Year, is crucial for shopping in the GCC region, especially with the growing expat population.

November was identified as the busiest month for e-commerce, driven by Black Friday sales and preparations for Christmas and New Year. Ramadan in March and International Women’s Day in January also contributed to the growth, with sales increasing by 11% and 14%, respectively.

The study found that the average order value in the region rose from $30 in 2023 to $36 in 2024, reflecting a trend toward spending more on quality items. Mobile commerce accounted for 44.6% of all orders in the region, with Saudi Arabia leading at 62%, followed by the UAE (60%), Bahrain (59%), Oman (58%), Kuwait (57%), and Qatar (54%).

Marketplaces continued to dominate, contributing to 67% of total sales, with top product categories including electronics, fashion, and home and garden. High-value items like furniture and jewelry also contributed to higher average order values.

Anna Gidirim, CEO of Admitad, said, “This year’s surge in e-commerce activity demonstrates the evolving shopping habits in the MENA region, where mobile-first experiences and marketplace-driven sales are reshaping consumer behavior.”

Kuwait had the highest average order value at $127, followed by the UAE at $102, Egypt at $74, Saudi Arabia at $52, and Qatar at $50. Pakistan experienced the largest sales growth at 28%, with increases of 17% in Kuwait and 8% in Saudi Arabia.

The report emphasized how cultural celebrations influence consumer behavior and highlighted the growing role of mobile commerce and marketplaces in shaping the region’s e-commerce landscape.



Source: https://meatechwatch.com/2024/12/20/saudi-arabia-leads-e-commerce-surge-in-mena-during-2024-festive-season/

ATTENTION